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What is Futures Trading?

Probably every investor knows about futures trading. This financial instrument is applied to different commodities and shares. There are futures on gold, grain, oil, precious metals, etc. Crypto is not an exception.

Crypto futures derivatives are one of the most used tools throughout all crypto platforms. FTX used to be one of the biggest futures trading exchanges until it went bankrupt and lost its clients. However, there are other large platforms with a higher vote of confidence that offer crypto futures trading. For example, you may use the world’s known Binance or European WhiteBIT exchanges. They offer different leverage ratios, but both provide reliable and convenient conditions for this type of trading.

What are Futures?

Futures means forecasting the value of an asset, looking from a long-term perspective, and “betting” for that price. Of course, success depends on the price forecast, which is directly connected with a trader’s ability to analyze past price fluctuations and build predictions based on the data from the past. Also, a trader should consider the following aspects:

  • Market trend;
  • Global economy
  • Inflation;
  • Investors’ sentiment;
  • News background;
  • Fundamental and technical analysis.

Based on the analyzed information, the trader can estimate the future price of the asset and open a futures contract. In the agreement, the trader agrees on the value of the asset and the date when one will buy or sell it. If the trader’s prediction is correct, he makes a profit, but if not, he loses money.

Futures is the riskiest tool for crypto trading. It requires extensive experience and the ability to gather information and analyze it. Also, successful futures trading needs a quality trade cryptocurrency exchange that offers all the features required and leverage for this type of trading.

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Take, for example, the WhiteBIT platform with its convenient and transparent interface and leverage up to X20. It has very suitable futures trading conditions and perpetual futures contracts that have no end date and are supplied by the exchange’s financial mechanism. On WhiteBIT, you will find popular BTC futures and other assets to trade futures.

What is the Best Crypto Futures Trading Platform?

When it comes to futures trading in the crypto market, it is essential to choose a reliable and reputable exchange. WhiteBIT is a platform that offers a range of features including:

  • A clean and transparent interface
  • Convenient trading tools
  • Customer support
  • Up to 20x leverage
  • Perpetual futures
  • Demo trading

For beginner traders, the demo trading option is particularly useful as it allows them to practice futures trading, test out different leverage options, and see how they affect the outcome.

Perpetual futures contracts are also available on WhiteBIT, with no set end date. This means traders are not required to buy or sell assets on a specific day but rather pay a fee based on their position and market conditions.